Virginia, United States — The AES Corporation announced that its wind business has signed an agreement with Jan Reichert, a Polish wind developer, to acquire its development pipeline of 353 MW.
Through the transaction, AES Wind Generation acquired a 51 percent stake in the pipeline, and will take ownership of up to 90 to 95 percent, pending completion of certain milestones by Reichert.
Of the total pipeline, 158 MW of projects are expected to begin construction next year and will require approximately $80 million of AES equity through the end of 2011. Completion of the entire pipeline would require approximately $175 million of AES equity through the end of 2014.
“Increasing our presence in Poland’s wind market falls in line with our strategy to pursue high-growth renewable energy markets. With 775 MW in our development pipeline, we are establishing a strong foothold in one of Europe’s most attractive markets for wind generation,” said Paul Hanrahan, president and CEO of AES.
The Reichert investment builds on AES Wind Generation’s recent entry into the Polish wind market through its acquisition of 3E’s 422 MW development pipeline, announced in April 2010. With this new investment, AES Wind Generation has a development pipeline totaling 775 MW in Poland.
Poland has aligned its renewable energy targets with those of the European Commission, with plans to reach 10.4 percent in 2010 and 15 percent in 2020. Poland’s current installed base of wind capacity is at 725 MW, and is projected to reach 6,000 MW by 2020. According to the European Commission, Poland is one of the fastest growing economies in the European Union.